According to the Instagram help page, a verified badge "means that Instagram has confirmed that this is the authentic account for the public figure, celebrity or global brand it represents."

The photo sharing site verifies accounts of popular individuals and entities because "they have a high likelihood of being impersonated. [They] want to make sure that people in the Instagram community can easily find the authentic people and brands they want to follow. Verified accounts are reviewed as part of [their] efforts to make sure that the Instagram experience stays authentic."